For an online retailer or merchant, the most dreaded word that you can hear is “chargeback.” Facing a chargeback doesn’t mean a loss of revenue. It means wasted time, shipping costs, and the potential loss of a product.
Look at the insane costs this business had to bear from an error with chargebacks. They lost almost $18,000! What if there was a way to reduce chargebacks, though?
Luckily for you, we’ve got some suggestions on how you can do that in our chargeback guide. By reading on, you’ll understand how chargebacks work and how to protect yourself from them.
What Is a Chargeback?
A chargeback is when the bank holds on to the funds that the customer should have paid you. The bank will then do its best to mediate the dispute. After some deliberation, they will rule in favor of you or the customer.
This process can be lengthy, and the bank is more likely to side with their customer than the retailer.
That’s why the following tips are so important. There’s no way to “force” a payment to go through. That means you’ve got to be as transparent as possible in your operations.
Ensure Your Systems Are Efficient
If you’re selling any services with repeating payments, one of the issues might be that you are charging something extra by mistake. If you’ve offered a free trial, for example, something may be causing the customer to receive an incorrect charge.
Make sure that all of your systems are working efficiently. If you need a second pair of eyes to look it all over or help you, head to redirontech.com.
They can help you simplify your systems and make them easier to use for both you and the customer.
Give Your Customers a Line of Contact
Try to have your work phone on you at all times. It’s a rare case that a customer will jump straight into hitting you with a chargeback. They’ll try to contact you first.
If you’re available to assuage any worries, you’ll receive fewer chargebacks.
The Best Way to Reduce Chargebacks
The quickest and easiest path to reducing chargebacks is to look at the name showing on the bank statement when a customer purchases from you. If it isn’t agonizingly obvious where the billing came from, you’ll experience chargebacks a lot.
It’s as easy as making the name on the statement your brand or your real name. Pick the one that corresponds to whatever the customer will have seen the most when dealing with you.
An Easy Way to Buy Some Relief
That’s it for our chargeback tips. Now that you know how to reduce chargebacks, you can sleep easier at night. You’ll never need to wake up and worry about getting a phone call from your bank about disputed charges.
With all of these accepted payments and happy customers that you’ve now got, you’ll have plenty of extra free time.
What better way to spend that time than looking through the rest of our blog? We’ve got it all, from business tips to lifestyle advice. Just bookmark us and keep reading!